Episode 133 Transcript – What does payment X get me?
You are live with Jessi Johnson, I’m doing the best I can to showcase this wonderful piece of art, my fiancée has created in the background, on our fire place mantle, on this beautiful Friday afternoon.
My comments today are with regards to how much a payment of X dollars will get you with the mortgage these days, again dating my video blog, using the current rate. Everything I do is a numbers game, majority of the time it works but sometimes it doesn’t. I obviously enjoy doing is crunching numbers, that’s exactly what I’ve done for you today. So to give you a quick breakdown, I’m going to give you some calculations on a certain payment and what it will get you for a mortgage using two amortization types. Now before I gave you these calculations, you need to understand that I had to simplify this. What I mean by that is if you’re a first home buyer putting 5% down as opposed to someone putting 20% down, there’s going to be a pretty hefty insurance premium that’s going to increase mortgage. For example with a two hundred thousand dollar mortgage, you could have at least an extra five grand in costs. I’m making numbers up here but it’s pretty accurate, so these are within a few bucks as long as you keep that in mind. So with a one thousand dollar payment and using a 25 year amortization, I get to a mortgage of 192.5k. If you were to offer a 35 year amortization and stretch that out, it’s going to be 232k. Fifteen hundred bucks a month payment gets you a 290k mortgage on a 25 year amortization but a 345k mortgage with a 35 year amortization. Keep in mind the payment I’m using is 3.89 fixed or 3.89 frozen variable, if you’re not sure what that is, ask me because you probably should know. A two thousand dollar payment a very common mortgage payment these days and gets you a 385k mortgage with a 25 year amortization. You get a 462k mortgage with a 35 year am. Twenty five hundred dollars a month gets you 482k mortgage using a 25 year amortization and a 576k mortgage with a 35 year amortization. With three grand a month, in the past it didn’t get you so much, these days using a 25 year am gets you a 577k mortgage or 807k on a 35 year am. Combine these rates with respectively still pretty good prices is one heck of an affordability factor. You can catch me at jessi@jessijohnson.ca or at firsthomeinfo.ca, remember to own your life. Have a great day.
